EPF updates withdrawal conditions to help members settle study loans

The Employees Provident Fund (EPF) yesterday announced that members will be able pay for their outstanding education loan amount using their Account 2 under the Education Withdrawal facility effective 21 July 2017. This is regardless of the effective date of their education loan agreement.

In a statement obtained by Human Resources, EPF stated that this enhancement will replace the current conditions which limits the Account 2 withdrawal based on the dates of loan agreements.

EPF deputy chief executive officer (operations) Dato’ Mohd Naim Daruwish said: "The enhancement to the policy was done after taking into consideration the feedback from members who faced difficulties in reducing or settling their education loans using their EPF savings.

“The EPF serves to create a positive member experience and we always strive to improve all areas that we can while delivering our mandate. We are pleased to note that the enhancement is expected to benefit up to 70,000 of our members who have yet to repay their education loans.”

Additionally, the EPF also announced an enhancement on the submission period for Age 50/55/60 Withdrawal Application Form.

With immediate effect, members can submit their withdrawal application form 9B (AHL) for Age 50 Withdrawals or Age 55 and Age 60 Full / Partial Withdrawals one month prior to their birth date instead of the previous six months.

Dato’ Mohd Naim addded: "Before members make any withdrawals, we strongly encourage them to visit our Retirement Advisory Services located in 18 branches throughout Malaysia to receive free advice on the best withdrawal option that fits their needs."

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